Telecom industry in India is growing and there's no stopping at the moment. What could be the reason for a common man running from pillar to post for getting a telephone connection to the same man getting choices to choose from multiple operators at affordable rates?
Changing the telecom licensing from fixed license fees to revenue share model brought the rates down drastically and people (only the upper middle class and few portion of middle class) started tasting telephones and getting the benefits of staying connected. There was a feeling that the growth of telecom has become slow and it would take a long period for the telecom operators to break even. This was the situation prevailing pre launch of reliance communications.
When the biggest gambler Mukesh Ambani entered the telecom sector with Reliance, they had high expectations of selling millions of phones and had agreements with leading mobile manufacturers including LG, Samsung and Nokia. When its launch became a flop, they sold mobile phones like vegetables in the market and every one including the poor who does not have a roof to stay at nights or during rain has a mobile phone in his/her hand. The slogan "Dhirubhai ka sapna har ghar mein ho mobile apna" - Dhirubhai's dream to have an own mobile in every ones home became true in a mad rush to dispose off the heaps of mobile handsets committed to the mobile manufacturers by Reliance Communications.
Every one in India irrespective of the earning power tasted the power of being connected because of Reliance Communications and the telecom industry took the biggest leap and never turned back since then...
If we look at the series of events, the credit goes to all and it goes to none.
With the Ex minister for Telecom Mr A Raja's wish to have his favorites in the telecom industry, new players like Uninor, Swan entered the market and existing cheap and small time player Aircel became a national operator.
Uninor had highly intelligent people at its helm and entered the market with very high ambitions and slipped off in the very first month. They missed the simple logic that "when in Rome be a Roman"!
Few mistakes to mention are...
They felt that they should reach the customers directly without any retailers in between with the help of Kiosks to recharge the existing mobile numbers!
Would spending millions be a viable option or having retailers whom the telecom operators dictate terms and rides on them be a better option?
Deducting Rs 2 per day for the plan the customer chooses is an unwanted measure and without that clause, Uninor would have been a bigger hit than Docomo.
Changing the telecom licensing from fixed license fees to revenue share model brought the rates down drastically and people (only the upper middle class and few portion of middle class) started tasting telephones and getting the benefits of staying connected. There was a feeling that the growth of telecom has become slow and it would take a long period for the telecom operators to break even. This was the situation prevailing pre launch of reliance communications.
When the biggest gambler Mukesh Ambani entered the telecom sector with Reliance, they had high expectations of selling millions of phones and had agreements with leading mobile manufacturers including LG, Samsung and Nokia. When its launch became a flop, they sold mobile phones like vegetables in the market and every one including the poor who does not have a roof to stay at nights or during rain has a mobile phone in his/her hand. The slogan "Dhirubhai ka sapna har ghar mein ho mobile apna" - Dhirubhai's dream to have an own mobile in every ones home became true in a mad rush to dispose off the heaps of mobile handsets committed to the mobile manufacturers by Reliance Communications.
Every one in India irrespective of the earning power tasted the power of being connected because of Reliance Communications and the telecom industry took the biggest leap and never turned back since then...
If we look at the series of events, the credit goes to all and it goes to none.
With the Ex minister for Telecom Mr A Raja's wish to have his favorites in the telecom industry, new players like Uninor, Swan entered the market and existing cheap and small time player Aircel became a national operator.
Uninor had highly intelligent people at its helm and entered the market with very high ambitions and slipped off in the very first month. They missed the simple logic that "when in Rome be a Roman"!
Few mistakes to mention are...
They felt that they should reach the customers directly without any retailers in between with the help of Kiosks to recharge the existing mobile numbers!
Would spending millions be a viable option or having retailers whom the telecom operators dictate terms and rides on them be a better option?
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